Loading
5-Sep-2013 3:25 PM

Precision Air records USD19m loss in FY2013, 737s drive maintenance costs up 98%

Precision Air recorded a loss of TZS30.8 billion (USD19.1 million) for the year ended 31-Mar-2013, down from a profit of TZS1.8 billion (USD1.1 million) in FY2011/12, according to The Citizen. Passenger traffic for FY2012/13 increased 8.5% year-on-year to 895,650. The loss was attributed to a 24% increase in "direct expenditures" to TZS145 billion (USD89.9 million), driven by fuel, equipment and maintenance costs, and an 18.6% increase in "indirect expenditure" to TZS42 billion (USD26 million), including an 8% increase in staff-related costs. Aircraft maintenance costs increased 98.3% to TZS23.6 billion (USD14.6 million), due mainly to the high cost of maintaining the airline's three Boeing 737s. The airline stated, "Considering the performance, the group recognised the need to execute a turnaround. Towards that end, the board has made changes in the top management which has developed a new 5 year strategic plan already approved by the board."

Want More News Like This?

CAPA Membership gives you access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More